Friday, June 12, 2009

MONEY IS CREATED BY GOVERNMENT , RIGHT? WRONG.

Have you ever thought where does the money that we use come from? Most of us believe that money comes from the government's printing press ,mint, which prints the money in circulation. Right? Wrong.

What if you were told that money is created NOT by the government but by the banks OUT OF THIN AIR. You would most certainly be bewildered and would shrug this as figment of somebody's imagination. If you feel this way, then you will be shocked to see the following video.

It explains the origin of money from "Debts" and how banks create money out of debt that you and I take from them. Most of the money created by banks and in circulation isnt really backed by anything of substance unlike in earlier centuries when money was backed by finite physical commodities like gold silver etc. But, now money is not backed by any physical assets and this allows creation of money by banks to the extent of debt they lend out to the market.

The video also will give you an insight into why this mortgage crisis has feared the bankers and the politicians alike and why governments the world over can not allow banks to fail. It starts by explaining the origin of money and the banking system . It then explains how the bankers started manipulating the monetary system for their advantage to the extent that the whole world today is in their grip. It also explains why debt is an important aspect of money creation and why governemnt is always in debt to the banks when it is supposed to have the control of money printing mint.


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